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The subject of Stop Losses provokes heated discussion here on Stockopedia. Opinions are divided on how, why, when, where and if you should set a pre-defined exit price on a trade. Some investors won’t use stop losses, but others can’t live without them.
One of the biggest questions about stop losses is why they should even be used in the first place. Those in favour point to the benefits of lower volatility in a portfolio and protection from sudden single-stock disasters. For that reason, they’re often promoted by traders like Robbie Burns and Mark Minervini.
But the counter argument is…